Judiciary votes to amend bill, send to tax committee
July 9, 2008 1:07 pm BernieA bill to boost excise taxes on liquor by five cents a drink has passed one committee - but faces a tougher fight at its next stop, Assembly Taxation.
The Assembly Judiciary Committee voted Friday for Judiciary Chairman Bernie Anderson’s AB92. The bill would raise more than $51 million a year for drug and alcohol treatment and prevention programs in prisons, hospitals, schools and law enforcement offices.
If it’s passed, AB92 would be the first liquor tax increase in Nevada since 1981.
Anderson, D-Sparks, admits the increase is drastic, but says an excise tax is the best way to pay for Nevada’s alcohol and drug problems. In earlier testimony, state alcohol and drug commissioner Dorothy North said Nevada ranks first in the nation in per capita alcoholism and drug addiction but is 42nd in treatment.
“We’ve come to the point where we’re asking how to pay for all of this,” Anderson said. “The answer is, ‘Why don’t we go to the drinkers.”‘
The new taxes proposed, per gallon:
- $6.32, up from $2.05, for liquor with 22 or more percent alcohol.
- $2.88, up 75 cents, for liquor between 14 and 22 percent alcohol.
- $1.47, up from 40 cents, for liquor between one-half and 14 percent alcohol.
- 62 cents, up from nine cents, for malt liquor brewed in and out of state.
Anderson said that because the tax is measured in gallons, it looks larger than it really is for the average consumer. The tax would end up totalling about 35 cents for a six-pack of beer.
Only Assemblyman John Carpenter, R-Elko, voted not to recommend Anderson’s bill as Judiciary passed the bill along to the Taxation Committee.
Carpenter said he wanted to see the results of a planned statewide audit of drug and alcohol treatment programs before spending new tax dollars on them.
“I don’t believe it’s proper to increase taxes at this time,” Carpenter said. “Because we’re going to have an audit of the funds being spent in this area, I want to see that audit before I vote in favor of AB92.”
After the meeting, Anderson was adamant about the fact that the excise tax wouldn’t represent new money so much as money that already comes from other state and local sources.
“We have to look at the unfunded mandates we’ve been passing along to local governments. Hospitals have to give medical treatment to the indigent. Schools have to teach drug and alcohol awareness,” Anderson said. “Now we’re going to step up to the line and say this is how we’ll pay for it.”
Anderson said he hoped hearings before the Taxation Committee would force the Legislature to realize the need for more treatment programs. But he also expressed some doubt that the measure would pass with his tax plans intact.
“There is a real need for this, because we can prove that these programs have a dramatic effect on recidivism rates,” Anderson said. “But the reality of that bill (passing) is slim to none.”